Janus Henderson(US:JHG)2025-07-31 14:00Financial Data and Key Metrics Changes - The company reported adjusted diluted EPS of $0.90, representing a 6% increase compared to the same period a year ago [28] - Assets under management (AUM) increased by 23% to $457.3 billion, marking the highest quarterly AUM ever [8][50] - Adjusted revenue increased by 2% compared to the prior quarter and 9% compared to the prior year, primarily due to higher management fees on increased average AUM [23] Business Line Data and Key Metrics Changes - The company saw net inflows of $46.7 billion for the quarter, including $46.5 billion from Guardian's general account [14] - Fixed income net inflows were $49.7 billion, significantly up from $5.6 billion in the prior quarter [20] - Active fixed income ETFs delivered net inflows of $1 billion, with four ETFs each having at least $100 million of net inflows [21] Market Data and Key Metrics Changes - Net flows were positive in the U.S. for the eighth consecutive quarter, while EMEA, LatAm, and Asia Pacific experienced net outflows [16] - Institutional net inflows were $49 billion, marking the third consecutive quarter of positive flows [18] - The U.S. intermediary channel saw positive net flows despite a challenging flow environment [17] Company Strategy and Development Direction - The company is focused on three strategic pillars: protect and grow core businesses, amplify strengths, and diversify where clients give the right to win [32] - The partnership with Guardian is expected to amplify the company's insurance, institutional, and fixed income businesses [36] - The company aims to enhance client relationships by evolving from transactional to peer-to-peer partnerships [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of business trends despite recent market volatility [5] - The company is committed to delivering superior financial outcomes for clients and maintaining a strong balance sheet for future investments [50] - Management acknowledged the challenges in the retail equity business but remains confident in the equities franchise [60] Other Important Information - The company completed a strategic partnership with Guardian, which includes a commitment of up to $400 million in seed capital for product innovation [7] - The company has maintained a healthy quarterly dividend and has reduced shares outstanding by over 22% since 2018 [30] - The adjusted operating margin for the second quarter was 33.5% [28] Q&A Session Summary Question: What are the next priorities on the institutional side? - Management is pleased with the three consecutive quarters of institutional net flows and sees potential for continued growth, particularly with the Guardian partnership [54] Question: How do you see the solution to persistent outflows in retail equity business? - Management believes in the equities franchise and is focused on protecting and growing core businesses, emphasizing the importance of delivering outstanding investment performance [60] Question: Can you speak on the addressable market for the JAAD ECL product? - Management highlighted the successful launch of the JABS ETF, which addresses client needs for short-duration, high-quality fixed-rate securitized assets [70] Question: What is driving the strong improvement in investment performance? - The improvement is attributed to strong performance in U.S. and global equity products, with at least 72% of AUM ahead of benchmarks across all time periods [72] Question: What are the opportunities in the multi-asset space? - Management sees potential in the balanced fund and is optimistic about growing interest in multi-asset solutions, particularly in the U.S., Europe, and Asia [80]